Total Quality Management (TQM) - Japanese-style management approach to quality improvement.
Last updated: February 22, 2024 Read in fullscreen view
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The history of total quality management (TQM) began initially as a term coined by the Naval Air Systems Command to describe its Japanese-style management approach to quality improvement. An umbrella methodology for continually improving the quality of all processes, it draws on a knowledge of the principles and practices of:
- The behavioral sciences
- The analysis of quantitative and nonquantitative data
- Economics theories
- Process analysis
During the global recession of the late ’70s and early ’80s, the United States (and the rest of the world) faced stiff competition from Japan. The Japanese had captured the world automotive and electronics markets because they found a way to produce high-quality goods at lower prices. And as a result, corporations in the U.S. looked more closely at the quality of Japanese goods and services, trying to find ways to improve production and recapture market share.
Their solution was Total Quality Management.
If your organization has just decided to incorporate TQM, or if you want to see whether this process improvement methodology can help you improve production, this blog post will cover Total Quality Management principles and techniques you can start using now.
Total Quality Management (TQM) is a management approach focusing on the improvement of quality and performance in all functions, departments, and processes across the company to provide quality services which exceed customer expectations. TQM expands the scope of quality of every department from top management to lower level employees. It enables management to adopt a strategic approach to quality and put more effort on prevention rather than on inspection. Through TQM, all employees are trained in a professional manner and encouraged to make decisions on their own to improve the overall quality and attain higher standards. This is key to achieving the TQM results desired, because without your employees on board and feeling empowered, you might as well be swimming upstream.
Through TQM, companies increase customer satisfaction, reduce costs, and foster team work. Companies can also gain higher returns on sales and investment. The ability to provide quality services allow for higher prices to be charged. Total quality means better access to global markets, greater customer loyalty, wider recognition as a quality brand, etc.
TQM is broadly based on the following principles:
Customer Centric Approach
Consumers are the ultimate judge to determine whether products or services are of superior quality or not. No matter how many resources are pooled in training employees, upgrading machines and computers, incorporating quality design process and standards, bringing new technology, etc.; at the end of the day, it is the customers who have the final say in judging your company. Companies must remember to implement TQM across all fronts keeping in mind the customers.
Employee Involvement
Ensuring total employee involvement in achieving goals and business objectives will lead to employee empowerment and active participation from the employees in decision making and addressing quality related problems. Employee empowerment and involvement can be increased by making the workspace more open and devoid of fear.
Continual Improvement
A major component of TQM is continual improvement. Continual improvement will lead to improved and higher quality processes. Continual improvement will ensure companies will find new ways and techniques in producing better quality products, production, be more competitive, as well as exceed customer expectations.
Strategic Approach to Improvement
Businesses must adopt a strategic approach towards quality improvement to achieve their goals, vision, and mission. A strategic plan is very necessary to ensure quality becomes the core aspect of all business processes.
Integrated System
Businesses comprise of various departments with different functionality purposes. These functionalities are interconnected with various horizontal processes TQM focuses on. Everyone in the company should have a thorough understanding of the quality policies, standards, objectives, and important processes. It is very important to promote a quality work culture as it helps to achieve excellence and surpass customer expectations. An integrated system ensures continual improvement and helps companies achieve a competitive edge.
Decision Making
Data from the performance measurement of processes indicates the current health of the company. For efficient TQM, companies must collect and analyze data to improve quality, decision making accuracy, and forecasts. The decision making must be statistically and situational based in order to avoid any room for emotional based decisions.
Communications
Communication plays a crucial role in TQM as it helps to motivate employees and improve their morale during routine daily operations. Employees need to be involved as much as possible in the day to day operations and decision making process to really give them a sense of empowerment. This creates the environment of success and unity and helps drive the results the TQM process can achieve.
It requires immense efforts, time, courage, and patience to successfully implement TQM. Businesses successfully implementing TQM can witness improved quality across all major processes and departments, higher customer retention, higher revenue due to improved sales, and global brand recognition.
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